Preprint Article Version 1 This version is not peer-reviewed

Corporate-NGO Partnerships through Sustainability Labeling Schemes: Motives and Risks

Version 1 : Received: 5 March 2019 / Approved: 6 March 2019 / Online: 6 March 2019 (10:46:18 CET)

How to cite: Poret, S. Corporate-NGO Partnerships through Sustainability Labeling Schemes: Motives and Risks. Preprints 2019, 2019030072 (doi: 10.20944/preprints201903.0072.v1). Poret, S. Corporate-NGO Partnerships through Sustainability Labeling Schemes: Motives and Risks. Preprints 2019, 2019030072 (doi: 10.20944/preprints201903.0072.v1).

Abstract

This article analyzes the emergence of partnerships between corporations and nongovernmental organizations (NGOs) through voluntary product labeling schemes. The economics, management, and business literatures are reviewed to highlight cross-checking, consistencies, and complementarities among these disciplines. The objective is to identify and analyze the motives, risks, and joint benefits of partnering via voluntary product labeling, using examples from the agri-food sector. This study is an attempt to offer a framework of corporate-NGO partnerships by showing that the drivers and risks of each partner merge because each takes a step into the sphere of the other. The main risks – namely, a loss of profitability, credibility and legitimacy – are related to the financial and existential dependency and the asymmetric information between the partners in favor of corporations, inducing an ``NGO-capture'' risk.

Subject Areas

Corporate Social Responsibility; Cross-Sector Alliance; Firm Strategies; Nongovernmental Organizations; Sustainability Labels

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